A major lithium partnership, Tianqi Lithium Energy Australia (TLEA), will stop its yearly payouts to shareholders. This team, a mix of Australia’s IGO and China’s Tianqi Lithium, has too much unsold lithium hydroxide. Also, the battery world is changing.
Why the Changes? Too Much Stock and Market Swings
At their Kwinana Refinery, they have a lot of extra lithium hydroxide. This refinery is partly owned by IGO. This problem might last a while. Now, most buyers want lithium carbonate, not hydroxide. Carbonate is used in lithium iron phosphate (LFP) batteries. These batteries power everything from hybrid cars to big energy storage.
The shift happened fast because electric car and energy companies changed what they need. Some factories that make lithium are switching. They want to make more carbonate. This has led to the extra stock at TLEA.
What This Means for Money and the Future
IGO says they won’t get any money from TLEA in 2025. They don’t know when payments will start again. This pause helps them get steady in a changing market.
But, there’s good news too. Their Greenbushes lithium mine is still making a lot of money. This mine works with a big American company, Albemarle. So, even though selling processed lithium is tough, getting lithium from the ground is still strong.
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